SWP - Best Tool for Retired People

[fradela]

Withdraw you money from Mutual Funds use Systematic Withdrawal Plan (SWP_. It is opposite to SIP.

 

[COSMOCRAT]

Yes, my retirement planning includes this.
Set retirement age to 55-60.
Gather as much wealth as possible till 50.
Slowly start transferring accumulated wealth from equity to stable debt funds from age 50 to 60. (Keep 20% still in equity)
Around the age of 60 start SWP from a debt fund with a required monthly amount.

 

[tachniki]

Yes, my retirement planning includes this.
Set retirement age to 55-60.
Gather as much wealth as possible till 50.
Slowly start transferring accumulated wealth from equity to stable debt funds from age 50 to 60. (Keep 20% still in equity)
Around the age of 60 start SWP from a debt fund with a required monthly amount.

After taxation change on debt fund, does it still make sense to go for debt fund instead of fixed deposits?

 

[COSMOCRAT]

After taxation change on debt fund, does it still make sense to go for debt fund instead of fixed deposits?

The 12.5% tax is not a problem but the removal of indexation was quite a big blow. I chose mutual funds due to ease of access and tax is straightforward. In FD first there is TDS, then tax on total income and then claiming that TDS.

It's still 25 years away. Taxation rules will be changed way differently than those of today, so there is no point worrying too much about that now.
For now, focus is to just increase the savings via equity.

 

[fradela]

After taxation change on debt fund, does it still make sense to go for debt fund instead of fixed deposits?

Yes. It gives more returns and safety than FD. FD has TDS.
You are not going to withdraw all your money once.
After retirement only, your are withdraw using SWP, not entire money. By that time you are not tax slab. No Tax for your money.

 

[fradela]

Here after you purchase, it is always short term, only slab rates.

 

[BVCBVC is verified member.]

Which fund is the best fund for SWP now?? As markets fell steep now, Is it good time to invest in SWP funds? (Assuming Age 54)

 

[fradela]

Which fund is the best fund for SWP now?? As markets fell steep now, Is it good time to invest in SWP funds? (Assuming Age 54)

SWP is a tool not a fund.

You can use any funds.

Equity, min 10 yrs investment.

Debt, you can invest lumpsum and take SWP monthly.

 

[BVCBVC is verified member.]

SWP is a tool not a fund.

You can use any funds.

Equity, min 10 yrs investment.

Debt, you can invest lumpsum and take SWP monthly.

Just to have some more clarity, I am using IndMoney and Paytm Money. I don't see any option of SWP. May be my question seems basic, But I am unable to see it. Any idea?

 

[its_karan]

Just to have some more clarity, I am using IndMoney and Paytm Money. I don't see any option of SWP. May be my question seems basic, But I am unable to see it. Any idea?

Mostly available if folio is directly registered with AMC(Asset Management Company)

Like this:

Some Fintechs have this, like Coin, but that's a demat folio so I don't recommend usually that.


Its thus always better ur folio on the amc's website if it's a non demat folio. You'll get the swp option

And that can always be managed elsewhere where they allow external fund importing(like Groww)

 

[BVCBVC is verified member.]

Mostly available if folio is directly registered with AMC(Asset Management Company)

Like this:
View attachment 82755
Some Fintechs have this, like Coin, but that's a demat folio so I don't recommend usually that.
View attachment 82757

Its thus always better ur folio on the amc's website if it's a non demat folio. You'll get the swp option

And that can always be managed elsewhere where they allow external fund importing(like Groww)

Just saw on my HDFC AMC. Thanks

 

[fradela]

Just to have some more clarity, I am using IndMoney and Paytm Money. I don't see any option of SWP. May be my question seems basic, But I am unable to see it. Any idea?

You can use Kuvera app which has STP, SWP and SIP.